India: Sponge iron prices increase on improved steel demand- 25 Jun

Indian sponge iron prices increased by INR 50-300/tonne (t) d-o-d across key locations.

PDRI prices were assessed at INR 21,300-25,800/t at the close of trading, while CDRI tags stood at INR 23,800-28,900/t.

Today, market sentiment remained cautiously optimistic, driven by expectations of a potential uptrend in prices and a stabilization in demand. This development suggests a shift towards improved market participation, especially in the semi-finished materials segment.

Transactions for approximately 25,650 t of sponge iron were recorded on Wednesday, compared to 13,750 t on 24 June. This notable rise reflects renewed buying interest and a marginal improvement in market sentiment. The increase in trade activity was observed in key regional markets such as Raipur, Raigarh, and Durgapur. Market participants in these regions responded to slightly firmer price offers, which were supported by a corresponding increase in demand.

Raw material movements

• Iron Ore pellets (Fe 63%)
  BigMint’s index of iron ore pellets (Fe 63%) PELLEX stood at INR 9,150/tonne DAP Raipur on 24 Jun’25. However, sponge iron manufacturers are showing limited interest in fresh bookings due to moderate demand and the fact that adequate quantities were already secured at previous rates. Manufacturers are also anticipating a slight decline in prices in the near term.
• Non-coking coal (RB2 grade)
  RB2 grade coal prices are currently hovering at INR 7,400-7,500/tonne (excluding taxes and other charges) at Vizag Port. The combination of higher stock at ports and subdued buyer interest may exert downward pressure on prices in the short term.

Bellary market overview

Bellary PDRI and CDRI prices moved slightly upwards by INR 50/t to INR 24,400/t and INR 24,950/t. Market participants informed that many plants in Bellary are currently operating at 50-60% capacity utilization due to higher raw material costs and subdued market demand. As a result, sponge iron prices have remained almost stable over the past two weeks, showing no significant reductions.

Rationale
Prices have been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50%, whereas other data sets are considered as T2 and given a weightage of the balance 50%.

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